Intel CEO Pat Gelsinger speaks at the Computex conference in Taipei, Taiwan, Monday, June 4, 2024. New products helping to turn the tide include a wave of share losses among peers including artificial intelligence leader Nvidia.
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Global semiconductor stocks fell on Friday after U.S. chip company Intel reported a series of dismal results that sent its shares tumbling, and a global market selloff weighed on some of the technology industry’s biggest names.
Intel The company’s shares fell 21.51% in U.S. pre-market trading at 04:37 a.m. ET on Friday. Reports sharp decline in June quarter earnings It also said it would lay off more than 15% of its employees as part of a $10 billion cost-cutting plan.
Some major U.S. chip companies also fell in U.S. pre-market trading on Friday, with Nvidia’s shares falling about 3.5% at 05:53 a.m. ET. A report puts pressure on the stock information Nvidia is the subject of an antitrust investigation by the U.S. Department of Justice.
The U.S. Department of Justice is investigating complaints that the chip giant allegedly abused its dominant position in the artificial intelligence chip market.
CNBC has reached out to the Justice Department and Nvidia for comment on the report.
in Asia, British Semiconductor Taiwan Semiconductor Manufacturing Company (TSMC) closed down 4.6%, and South Korea’s Samsung also closed down more than 4%. TSMC is the world’s largest chip manufacturer and Samsung is the world’s largest chip manufacturer The world’s largest storage semiconductor company.
Samsung rival SK Hynix, which supplies U.S. giant Nvidia, also fell sharply, closing down more than 10%.
The sell-off in Europe continues. shares ASMLShares of the Dutch company that sells key tools needed to make cutting-edge chips fell more than 6% around 4:23 a.m. ET. ASMIShares in the company, also traded in the Netherlands, fell 9%. STMicroelectronics and Infineon are lower.
Intel’s results added to mixed results across the semiconductor industry, where companies like AMD and Nvidia Continue to benefit from the artificial intelligence boom. other players e.g. Qualcomm and arms, yes has yet to realize the benefits of the technology in its financial performance.
Pressure to increase chip inventories is Global stock selloff begins in U.S. and has spread to Asia and Europe. That’s particularly weighing on the tech-heavy Nasdaq and chip stocks.
The VanEck Semiconductor ETF, which includes major companies in the sector, closed down about 6.5% in the U.S. on Thursday.
